Magma_International_Ltd - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 30 June 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements. However he was not involved with the operations of the business for the accounting period and is unable to obtain explanations from the sole director at the time. These accounts have been extracted and compiled from the underlying records maintained on appropriate accounting software.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and the Financial Reporting Standard for Smaller Entities (effective January 2015).

The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

The company was reliant on the continuing support of the director, M Leach who died on 1 November 2016. These accounts have been prepared on a going concern basis.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services in the ordinary nature of the business and is shown net of VAT. Turnover is recognised at the date of invoice.

In the year to 30 June 2016 100% (2015 - 100%) of the company's turnover was to markets outside the United Kingdom.

Financial instruments are classified and accounted for according to the substance of the contractual arrangement as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Deferred taxation is provided at appropriate rates on all timing differences using the liability method only to the extent that, in the opinion of the director, there is a reasonable probability that a liability or asset will crystallise in the foreseeable future.

During the year the director maintained a loan account balance with Magma International Limited. At 30 June 2016 the balance owed to the company was £nil (2015: £34,965). The maximum outstanding balance due to the company during the year was £257.561. The director has paid interest of £2,439 (2015: £4145) on the loan account during the year at a rate of 3.25%. There are no fixed terms for repayment. The loan was paid off in full after the year end.